Value Added Tax (VAT)

Value Added Tax (VAT) was introduced in UAE in 2018. Value Added Tax (VAT) is a consumption tax applied on a good as its value is increased at each stage of its production or distribution. It is an indirect tax that is related to a taxpayer’s consumption and not their income.

VAT would be applicable to all the goods and services including automobiles, electronics, jewelry, restaurant services, and entertainment.

Businesses providing goods or services falling in the taxable category, with annual revenue of over AED 375,000, are required to register for VAT. It is optional for companies with annual supplies and imports less than AED 375,000 but over AED 187,500. Here, companies providing health or education services may reclaim the VAT from the government.
Free zones in UAE are exempt from VAT.

Tax consulting, reliable and timely advice, guidance and support in routine business functions have become an important aspect when it comes to managing VAT. CORPIN Consultants have specialised team of tax experts who will guide you through the documentation as well as valuation and management of VAT.